Online Auto Loans

1. Auto loans are only offered to those with good credit.

False
They can be offered to people who don't have stellar credit. However, certain types often require a high down payment and charge a high interest rate. Interest rates vary from person to person and are influenced by your credit standing, down payment and how risky the lender perceives you be.

2. You can get auto loans from a bank, dealer, credit union or financial institution.

True
Financial organizations, such as banks, usually offer the lowest interest rates. Credit unions generally have the lowest rates. In most cases, from dealers, the interest rates will tend to be higher. So, it is best to comparison shop.

3. It is wise to compare auto loans from several different institutions.

True
Various quotes should be compared from several companies to make sure you are getting the best deal. Most lenders provide a free application for potential clients. The Internet is a great place to begin researching on what kind of loan is best for you and a wonderful resource to compare quotes from several companies.

4. An auto loan lender will first pull your credit report.

True
Lenders will examine your credit history to determine how risky it is to lend you money. When shopping around, it is best to have your credit report to make any necessary changes and to avoid surprises. You can request a copy of your credit report from one of the three major national credit bureaus.They are Equifax, Trans Union, and Experian.

5. As with all matters, it is wise to get counsel when considering auto loans.